Join our community of traders FOR FREE!

  • Learn
  • Improve yourself
  • Get Rewards
Learn More

On Wednesday, the European stocks rose for a third consecutive day as investors witnessed the beginning of an economic recovery. Airlines were among the best performers in Wednesday trading, with Wizz Air’s shares surging 1.4%. The interest of investors rose from the fact that the company stated a higher pretax profit for 2020.

Wizz Air Holdings PLC reported a pretax profit of €294.1 million ($328.1 million) for the fiscal year that ended on March 31. This was a big jump from the results of €128.9 million for the previous fiscal year.

The low-cost airline’s annual revenue also rose to €2.76 billion from €2.32 billion, which was Wizz Air’s income for the previous fiscal year. The company also reported an increase in its ancillary revenue by 32% or €1.25 million, which represents 45% of Wizz Air’s total revenue.

The number of passengers also grew by 16% or 40 million and the airline’s net profit was estimated at €281.1 million. Meanwhile, the results for the previous fiscal year showed a net profit of €123 million.

Despite the higher revenue, the airline could not make specific predictions for this fiscal year as the coronavirus pandemic will definitely have a serious impact on the numbers. Wizz Air presented a revised fleet plan, with only 131 aircraft by the end of this fiscal year. The new plan showed that the company had to compromise 7 aircraft that were included in the initial fleet strategy.

As a way to attract more customers in the next few months, Wizz Air announced that it will lower the prices of its flights. The CEO of the company, Jozsef Varadi, said he believed the demand will increase due to the low fares. As a result of that, the travel sector is expected to recover from the huge losses inflicted during the pandemic.

Analyst stock price forecast and recommendation

According to MarketBeat, analysts have an average price target of €3,787.73 for the Wizz Air Holdings PLC stock. The airline has a potential upside of 3.2% from its current price of €3,670. This forecast is based on the results of 8 research reports conducted in the past 90 days.

The same media also offers the recommendations of 12 investment analysts who gave Wizz Air Holdings PLC a consensus rating of “Buy”. Out of the 12 analysts, 11 ranked the company’s stock as “Buy” and 1 – as “Hold”.

TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover Forex, Price Action and Social Trading.

Related News

  • Forex Market: EUR/AUD trading forecast for MondayForex Market: EUR/AUD trading forecast for Monday During Friday’s trading session EUR/AUD traded within the range of 1.4745-1.4810 and closed at 1.4768.Fundamental viewConsumer Confidence in Germany, the largest economy in the Euro zone, probably remained unchanged at 8.5 in June, […]
  • Forex Market: GBP/CAD daily forecastForex Market: GBP/CAD daily forecast During yesterday’s trading session GBP/CAD traded within the range of 1.8243-1.8311 and closed at 1.8270. At 6:53 GMT today GBP/CAD was losing 0.12% for the day to trade at 1.8252. The pair touched a daily low at 1.8249 at 5:00 […]
  • Soft futures mixedSoft futures mixed Soft futures were mixed on Monday with sugar, cotton and cocoa marking daily losses, while arabica and robusta coffee advanced.On the ICE Futures U.S. Exchange, sugar futures for October delivery traded at $0.1686 a pound at 13:21 GMT, […]
  • EUR/USD trades little changed following mixed euro zone dataEUR/USD trades little changed following mixed euro zone data The euro traded little changed against the US dollar on Monday, as euro zone data sent mixed signals to market players. While the investor confidence in the euro area reached the strongest level in almost three years, the French and Italian […]
  • Natural gas trading outlook: futures climb as US temps set to riseNatural gas trading outlook: futures climb as US temps set to rise Natural gas prices were higher during early trade in Europe today. The blue fuel recorded an impressive rally this week, as weather patterns call for rising temperatures over top-consumer US in the coming days.Natural gas futures for […]
  • Air Canada to buy 15 more Airbus A220-300 jetsAir Canada to buy 15 more Airbus A220-300 jets Air Canada said on Wednesday that it had converted options for 15 Airbus A220-300 jets into firm orders, which brings the total number of the Canada-built aircraft acquired for its fleet to 60.The air carrier had placed its initial […]